Be­ware of pay­ing dou­ble com­mis­sion

Weekend Argus (Saturday Edition) - - PROPERTY -

ALL TOO of­ten res­i­den­tial prop­erty sell­ers find them­selves the­o­ret­i­cally or ac­tu­ally com­mit­ted to pay­ing dou­ble com­mis­sions, says Si­mon Raab, man­ager of Gre­eff Prop­er­ties’ south­ern sub­urbs sales team.

“The law stip­u­lates that, un­less oth­er­wise stated in the man­date agree­ment, com­mis­sion is payable to any agent who is the “ef­fec­tive cause” of the sale, even if his or her man­date was ter­mi­nated some time be­fore the sale took place. If a sec­ond agent has been called in to mar­ket the prop­erty, whether or not he has helped se­cure the sale, the seller might well have to pay com­mis­sions to the pre­vi­ous and the cur­rent agent.

“There is al­most no way out of pay­ing com­mis­sions to both agents un­less it has been stip­u­lated at the out­set to the sec­ond agent that any buyer in­tro­duced to the prop­erty by the first agent will re­sult in him los­ing his com­mis­sion,” says Raab.

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